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Stock J has a beta of 1.29 and an expected return of 13.61 percent, while Stock K has a beta of 0.84 and an expected
Stock J has a beta of 1.29 and an expected return of 13.61 percent, while Stock K has a beta of 0.84 and an expected return of 10.55 percent. You want a portfolio with the same risk as the market. Requirement 1: What is the portfolio weight of each stock? Stock J Stock K Requirement 2: What is the expected return of your portfolio?
4 decimal places
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